Will the pattern of rising margins despite slightly lower sales continue in the first half?

First-quarter revenue was ¥12,736 million, down 1.0% year on year, while operating income was ¥6,229 million, up 4.2%, ordinary income was ¥6,406 million, up 6.6%, and net income attributable to owners of the parent was ¥4,337 million, up 7.4%. Revenue declined while profits increased, indicating that the profit growth was not simply driven by expanded demand.

The operating margin calculated from revenue and operating income rose approximately 2.4 percentage points, from approximately 46.5% a year earlier to approximately 48.9% in the current period. Year-earlier revenue was ¥12,861 million and operating income was ¥5,977 million, so first-quarter revenue declined by ¥125 million while operating income increased by ¥252 million. The operating margin for FY2026 was also approximately 43.7%, meaning that the margin this quarter exceeded the full-year level, although quarter-specific seasonality may be a factor.

The company describes its initiatives as providing high-performance, high-value-added products, strengthening its proposal capabilities for individual and corporate customers, and planning and developing new products. However, the contribution of pricing, volume, product mix and SG&A expenses has not been disclosed, so the breakdown of the decline in revenue and increase in profit cannot be verified numerically. The reported results comprise a single software-related business segment, with no profit contribution shown for individual versus corporate customers or by product.

First-half results a year earlier were revenue of ¥25,951 million and operating income of ¥12,049 million, for an operating margin of approximately 46.4%. In FY2027-H1, in addition to checking whether revenue exceeds this level and operating income exceeds ¥12,049 million, we will look to see whether the operating margin can remain near the first-quarter level of 48.9%. Even if year-on-year revenue turns positive in the second quarter, a significant decline in the margin would require a reassessment of whether first-half profit growth is structural.